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Your World With Neil Cavuto

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  FOX News    Your World With Neil Cavuto    News/Business. Money tips  
   from Wall Street. New. (CC)  

    September 27, 2010
    4:00 - 4:59pm EDT  

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and well. and behind bars. the dow took a nose dive. it could be worse. and i bet neil cavuto can find a move glass of this. >>neil: no vote to extend tax cuts but a vote on tax likes. now, that senate democrats are making time for. welcome, everyone, i am here for neil cavuto and this is "your world." to the senate where democrats sets up a vote on what amounts to a tax hike on the largest employers, essentially tax the profits that american companies make in foreign countries saying it is aimed at keeping more jobs here, according to the president but microsoft's chief is on record saying it could push more u.s. jobs overseas. who is really going to pay for this? and now our guest. this looks good on the face, you give tax inducement to bring
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money and jobs back to america. >>guest: start with the fact that the united states is chasing businesses out of this country with our highest corporate income tax. we have talked about this. this cannot continue. we have the second highest corporate tax rate in the world so businesses are going to places like india and china and indonesia where they can get a better deal. our corporate tax rate is twice as high as the rest of the world. >> southwest airlines snatching up rival air tran for $1.4 billion. u.s. regulators and shareholders have to sign off but experts warn it will just mean higher fares for all flying. we asked the c.e.o. and when you have a low cost airlines like yourselves getting together with another low cost airlines like air tran, it seems that is a nail in the coffin of low-cost we talked about that in the wall street journal today. the president is saying, have a special tax on american companies like ibm and microsoft and general electric, that have plants and facilities overseas and have a special tax on them so when they bring that money back to the united states they have to pay higher taxes. the problem with this is the companies like ibm and microsoft are saying if you put this on us we will not bring the facilities air travel for the future because you are getting together. right? >>guest: wrong. this is an opportunity for southwest and air tran to expand low fares. we have an interesting competitive matchup with air tran. they are our smallest competitor and we only overlap on 40 -- on
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back but we will move more facilities abroad. >> that is one part of the proposal but there is another part and i will use the example used by fox a few minutes ago, if i am a multinational company and i fire an irish accountant and hire an american accountant they will give me a tax holiday for two years. that would work, wouldn't it? 4 percent. >> when you have this configuration and you two low cost guys are getting together it doesn't seem like the kind of territory that is conducive to lowering air fares all over. because they have been going straight up. >>guest: it is. it is an opportunity for us to expand our network. we don't compete much at all together. >>guest: i like the idea. when you have an american company and we have a lot of multinational companies leak microsoft, if they bring money back into the united states do not charming them 35 percent, have maybe 5 percent or 10 percent tax and you will see all sorts of money from abroad coming to the united states to be used for investment here for american companies creating jobs here in the u.s. the president has it backwards. raising taxes on american companies, we should cut them. by adding atlanta to our route map which is a hole in our southwest route system in the united states, we do not serve atlanta today. and air tran does not serve all of the destinations from atlanta that it could. so it is an opportunity for us to grow. we will be adding flights into atlanta. we will go into high fare marks. we will lower fares and we will stimulate traffic. it is a very pro competition and
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>> why is there no time to debate what tax rates we will pay next year but you can debate, you can find time to raise taxes on corporations? that seems strange. >>guest: that is a very good question and that is what the republicans are saying. wait, you guys are leaving at the end of the week, you had an issue for six years, this cliff we are falling off on january 1, called the big tax bomb that will drop on january 1 and they pro consumer move. >> we have you on tape saying you will lower fares and how about no checked fee for the first or second bag, will you keep to that? >>guest: of course, we are famous for no hidden fees and for having no first or second checked bag fee and that will continue at southwest airlines. >> you are regards an a model have done nothing to fix it so no company knows what the capital gains dividend tax is at the start of next year but they have time to raise taxes on american corporations. i fine it to be damaging to the taxpayers. >> i don't know anyone who thinks this is going to pass muster or that it will be put in place the tax hike on corporations. so the question is, why to they bring it up? >> they like to go after employer, everyone loves southwest and you have a wonderful reputation. and here face health care reform and sharply higher costs of insuring workers. what will you do? >>guest: well, we enjoy, our employees enjoy industry-leading pay at southwest airlines already; industry-leading benefits. so we have strong health care coverage. so think we will do fine.
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companies that move, that offshore their facilities. i don't like to see that, either. you don't like it. but the way to solve that problem is, bring the u.s. corporate tax rate down to the international average and under that, companies do not have an incentive to move abroad. >> your solution is to lower the corporate rate. >>guest: it would raise more >> lots of employers are charging their employees more for the health coverage they provide. will you have to do that like everyone else? >>guest: the main challenge we face with or without the legislation is the ongoing inflation. we do expect our employees to share some of the health care costs burden as the costs continue to rise. we do ask our employees to do that but, over all, again, they money, it would make money for the treasury. and create jobs. >> if senate democrats are in the quick to sell this. we call every one and in the one would make him or herself available. in the one. the democratic strategist, here to provide that view for us. now, let me use the same example, you tell me how this will create jobs back in america. i am a multinational have, among the best health care coverage certainly in the airline industry, if not among corporate america so we have strong health care coverage in place already. >> i fly southwest a lot and i see a lot of small business people around the country on your airline and they face a significant tax increase come january 1st. what do you think? raise taxes? for everyone? for the rich? or give everyone a break going
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corporation, i fire my chinese workers, discipline, low wage, i fire them, and i employ unionized members in the united states of america at high wage rates and high benefits, do you think i will do that just for a tax break? that's, this is how business works. do you think it works like that? >> the republican pledge to america is silent on what has been costing machines job for 10 years: outsourcing jobs to asia forward. what is your opinion on tax hikes? >>guest: fortunately the demand for air travel on southwest has been strong so at least we are seeing in terms of an economic recovery at southwest we are doing fine and i would be very concerned, of course, to see a slow down in the economy and i think it would be unwise to raise taxes and put more burden on consumers and >> you think a tax break, a small tax break, would bring those jobs back? >>guest: payroll taxes make up a large percentage of taxes taken from employees' wages employers pay. so this is decent. >> you think this is how business works i would fire my chinese workforce and hire --. small business owners. >> would you extend tax cuts for everyone? >>guest: absolutely. no question. how do you feel about president obama? he seems to have gotten a reputation as being anti business, doesn't like executives, what do you think? >>guest: i think he has a tough job.
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>>guest: there has to be ?eptsive to bring -- incentives to bring candidates back. in the first congressional district in new york, hundreds of millions were made outsouring tens of thousands of jobs to asia that used to be on wall street. >> can you tell me anyone in the obama administration who has run a business, knows how business works, and who thinks that this kind of incentive would bring jobs back? i think the recovery is enormously challenging and i think our primary desire is to work with the administration so that we can create jobs; we cabinet do that unless consumers are out there spending money but clearly with our acquisition of air tran here it is an opportunity for one of america's corporations to grow jobs. look to the future. >>guest: i don't have the resume of every member of the obama administration. >> in the one has written source code, not one. they have never met or done this. >>guest: i am sure some from met payrolls. something has to be done. there is a trend to outsource jobs to asia and republicans are silent on that. they want to tack about creating jobs in america and this is [ male announcer ] even before science was science,
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where they are going, 7.35 million jobs to asia. >> you convinced you bring them back by punishing business. >>guest: it will become inefficient to keep the jobs there but we have to keep them from gone over there and if we get companies that are creating jobs to create the jobs here rather than there, we are boater off. fire was fire. and the first language, the language of chemistry, was universal and eloquent. and the unique ability of chemiry to change everything has never changed. it is still the hope of human history to come. it is still the bond in partial between the elements. hydrogen, oxygen, carbon and human. you agree with that. >> i know that somebody in the obama administration has any experience of running a business, and you can tell because you do not know how business works. you really think if i fire my accountant in ireland and hire one in america and get a tax break i will do it. that is now how it works. >>guest: what if you bring the job to america if we do not have a tax break? >> if you lower the corporate tax break, it is already 35 sadly, no. oh. but i did pick up your dry cleaning and had your shoes shined. well, i made you a reservation at the sushi plce around the corner. well, in that case, i better get bk to these invoices... whh i'll do right after making your favorite pancakes. you know what? i'm going to tidy up your side of the office. i can't hear you because i'm also making you a smoothie. [ male announcer ] marriott hotels & resorts knows it's better for xerox to automate their global invoice process so they can focus on serving their customers. with xerox, you're ready for real business.
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percent, the highest, same at the highest level of any other industrialized nation, you lower it and the money will come back just like the jobs in the early part of the last decade. >>guest: the jobs are going to developing nations. >> you want to bring the money back, make it available to american and employ american workers you lower the tax rate and the money comes flooding bag. >>guest: republicans will in the stop jobs from going overseas because they are host: could switching to geico realis a bird in the handre on worth 2 in the bush? appraiser: well you rarely see them in this good of shape. appraiser: for example the fingers are perfect. appraiser: the bird is in mint condition. appraiser: and i would say if this were to go to auction today, appraiser: conservatively it would be worth 2 in the bush. woman: really? appraiser: it's just beautiful, thank you so much for bringing it in. woman: unbelievable anncr: geico. 15 minutes could save you 15% or more. running people who are shipping the jobs and making millions on the back of american workers and that is despicable. >> why wouldn't any democrat come on this program to debate with me like you are. why are they running away? >> you are a fantastic debater and that is probably why. >> you are just trying to get on my good side. they are running away from this because they know it will not pass and it is all politics. >>guest: i think it should pass and i think republicans should get on board and disavow
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themselves of cap dates -- candidates who ship jobs overseas. >> wrong on all accounts. and then there is this: british dare devil breaking the world record for bungee jumping. if you really want a real rush enough plastic water bottles and the thrill of a lifetime, jump right over to the your world website where your money is tracked, whether it is stocks and taxes or the election. stay tuned.
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>> democrats in damage control after senator jerk calls voters "out of touch," and mean the pollster who says this will have a damaging consequences for the party in five weeks. boss: and now i'll turn it over to the gecko.
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>> and damage from the diss after john kerry said the reason
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his party is facing a tough party is voter dozen not get it. >> the people do not pay that much attention to what is going on and people are influenced by a simple slogan rather than by the facts. >> bill clinton rushing to his defense in boston last night saying he did not mean any disrespect to the voters. and this is after health and human services secretary blaming dismal support for health care law on voter confusion, to a real clear politicians who says these comments will backfire on democrats. i want to repeat, part of what senator john kerry said because it was shocking in the harshness saying we have people that do not pay that much attention to what is going on and people are influenced by simple slogans rather than the facts or the truth of what's happening. it sounded like the senator
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broke the golden rule. >> politics 101 when you are trying to win you do not call them uninformed or dumb or having been misled. this goes back not just to the reports of the secretary of health and human services but the theme for seven or eight months as democrats confront the idea that the policies and particularly health care has not been popular with the people and the refrain has been, if voters really knew what was in it, they will warm to it when they understand it and that has in the happened so this is the rationale they have come up. >> the democrats have lost ground because of the performance of the economy and many to not like the health care reform but this is a new element. the tone, that senior people in the democratic party, are taking toward regular voters. it is a mistake but do you think it is part of the big picture,
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the democrats trouble in this election? >> absolutely. there is one refrain that we hear from, especially the tea party movement, this is coming out the last 12 or 18 months, the idea that there is elitist culture in washington, dc, that is out of touch with what voters around the country want and they tired of having policies this we do in the want jammed down their throat. that is part of the discontent in the country. >> on the other hand could it be that senator kerry is right, that there is misinformation athere in the clutter of the media? is there a half truth there. >> certainly there is misinformation on both sides and that is true of not just health care but any debate. but that is the way politics occurs in our country, the way the game is played. and there is a saying, if you are explaining, you are losing
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and the democrats have been explaining health care policy for a year and they have been on the defensive the who will time. and there is no sign that will change in five weeks. >> do they fire up the opposition? it does not do much for the guys on your side. >> with tea party voters, sort of the independents that are affected to talk like that is not the right strategy for democrats. >> five weeks from tomorrow, five weeks from tomorrow, what are we looking at? >> well, the general consensus is republicans are in position to take control of the house of representatives and the senate is really up for grabs. some people predict the republicans will fall a seat or two short but a lot of the rates have shifted the last couple of weeks. delaware went from republican pickup to leaping democratic. we have seen races tighten if places like connecticut with republicans pull out leads in ohio so the ground is shifting
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but the senate is still in play. >> president obama will go after, not "go after," but looking to get more young voters this week. do you thing that will be successful? can he fire up that constituency? >>guest: it is going to be very difficult for him. he is going to appear madison, wisconsin. >> why is it difficult for a popular president, he is still popular with many democrats especially young people, why is it difficult to near up young people to vote? >>guest: because he is not on the ballot and those folks, it is difficult to transfer his popularity that exists among young voters and say vote for this congressional candidate or fine gold in wisconsin. a lot of the voters still like the president as a person but they are disaffected, they were fired up in 2008 but their
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enthusiasm for politics may have waned and it is a difficult task to take that and transfer it to this election. >> thank you. we told you it would happen and it is, voters leaving one state, going to another, in a tax revolt. and now the election fallout. stay tuned. my nasal allergies are ruining our camping trip.
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>> do you remember the chrysler workers at the plant in detroit that made jeeps, drinking, and smoking pot at lunch?
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they have been fired. 13 of them. they were identified from the video you are watching right now. they have been fired. we await some response from the union. which said previously they do not agree with this kind of behavior on the job. the works were not on the job when they were doing this. how will the union react? they have been fired. fired. 13 of them. sign. sealed. delivered. president obama signing the $42 billion small business jobs act including a $30 billion lending fund and $ $12 billion in tax credits. and it will create half a million jobs, $84,000 a job. but my next guess says he just needs customers. if they come and give you real cheap money, you are not going
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to grab it and get out there and expand and make more chocolate? >>guest: no, and the reason is because there is so much uncertainty in the economy and i talk to people in business each day and they are not going to take this opportunity and say i will apply for an saab -- s.b.a. business loan just because the president signed this. what i would like is an extension of the bush tax credits if i had either/or, do i want $45 billion spending, and that is what it is, they call it a jobs bill for political purposes or take the extension of the bush tax credits because if i weigh additional capital out there for small businesses, or the quickening pace of the economy through the steption of the tax cuts, i will take tax
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cuts. >> you want all tax cuts stepped for everyone, instead of the tax increase you want them stepped to everyone? i have to ask, from a personal question, are you in that top tax bracket? are you facing a tax increase if we raise taxes on the rich in january? >>guest: in the now. before i started my chocolate company i was a criminal defense lawyer and it would have affected me. not now. i have been making chocolate for five years. here is the thing. >> what do you care? if some of us get a tax cut or for raise. is that good for business? >>guest: no, because what i would like to see is those people who i aspire in my business to make over $250,000 a year, and i wrote like to be there in my business and the point is for those people out there who make $50,000 or more
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-- $250,000 or more and employ people in small business you will see increased spending, and our economy, i believe, is going to grow at a faster rate that will help me more than the $45 billion jobs bill. >> thank you for joining us. we love that chocolate. thank you very much. stay tuned. and my next guess is wanting to cut taxes in new york and he is closing in on the republican incumbents and she declined to come on the program but joe is with us. welcome. >> nice to be here. >> i have lived in america 38 years and people have been
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leaving new york, new jersey, the northeast generally, the high tax states and constantly going to the floridas of the world, to the arizonas of the world. the reason is not the weather. the reason is taxes. but i put it to you, there is nothing you can do. >>guest: we have to change the leadership in albany for sure. it is not just washington, dc, but albany. we have a dysfunctional government there, one party system. the founding fathers did not envision a one-party system in washington, dc, or in the states. we need checks and balances. >> but that is state level, albany, you are trying to be a senator in the u.s. senate. what can you do at the national level that would change the culture, the political culture, the tax structure of stays leak new york and new jersey? >>guest: stop spending we don't have. the bottom line, and why my message is resonating, the only practicing c.p.a. elected to
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congress we are spending money we don't have, borrowing from countries like china, it use to be japan, that do not share our values and we are giving up the american dream it is about the american dream. >> do the people of new york respond to that message? if you spend less in new york state you will have massive layoffs and a massive reduction in government employment. can you get elected with that message? >> i am not talking about the people spending less. would hope we can employ enough people to bring back the consumer committee. 70 percent of the economy in this country is consumer. if people do not have jobs, or if they are taxed out of jobs we don't have the basis for the economy to grow. so, obviously, that is a big point. >> would you extend all of the bush tax cuts? >>guest: for the time being. we cannot have a tax increase of any sort while we are thinking this could be a double dip or could be a longer recession, or,
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maybe, even worse. it would be a lack of common sense to do anything especially on people would could be small business owner. higher tax brackets come from the individual tax return and many of the corporations are taxed like participateships and the money flows through so that would hurt job creation in the state. >> and i quote something from a democrat, cuomo, who is running for the governorship: "there are no places in new york today for tea party politics." he is a democrat running for governor, what do you say? egging he is not understanding reality. the tea party function is not a structured party. it is a vehicle for those taxpayers who are very much
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disenchanted. when i get a tea party have itation i attend. the energy of the people is there. and i think this is going to be a political revolution come volume. it is republicans, democrats, a lot of people are saying things have to change. >> joe, that is a strong word "political revolution." thank you very much for joining us. stay tuned. ♪
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is jim. president obama promised us health care reform would lower the cost. are you saying the higher costs are the direct result? >>guest: health care reform is one factor but not the primary factor it is more the economy than anything else. employers are not hiring people, are not adding new employees, now younger, healthy employees so the average cost is going up at a rate that employers cannot afford in a difficult economy like this. >> in what way, okay, so it is a small part of the overall increase. in what way is health care reform contributing to the higher costs? >>guest: the first year for 2011 there are a couple of small things employers have to deal with: first is covering adult dependent children up to age 26. previously many tapped that at an age of 22 or 23 so covering
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them to 26 means in this economy where many of those folks are struggling to find jobs, they are likely to stay on their mother or father's employer plan for longer so the employers are covering more people. >> and a story but this struck me. i heard from someone would has been in the hotel business for 30 years the other day and they used to have no deductible, went to the doctor and had a co-pay but no deductible over the year. now that person who makes $35,000 a year has a $1,on per year -- 1,500 per year deductible and the hotel chain blames health care reform. >>guest: that is interesting, i think that example, that is a high percentage of cost for someone making as much as you describe. now the reality is not everyone
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uses $1,500 worth of health care and employers, by sharing the cost with their employees, threw higher deductibles, are hoping employees will think and act differently. >> myself and many will be blown away by that number, up 12 percent neck year over this year. that is a staggering increase for many people. >>guest: it is and there is not a lot of people if to country who are getting 12 percent pay increase sow are right as a percentage of people's income it is a big challenge. >> thank you for bringing the numbers to us. we appreciate it. president obama taking his first shot at the republican's pledge to america to cut spending and lower taxes call iting -- irresponsible. is he right or wrong? stay tuned.
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>> and taking his first shot at pledge of america to cut taxes and spending. >> what i see out of the republican leadership over the last several years has been a set of policies that are just irresponsible. and we saw in their pledge to america a similar set of irresponsible policies. they want to balance the budget and they proposal $4 trillion worth of tax cuts. >> my next guest agrees with the president. he is a professor in california. professor, welcome to the program. good to see you. >> good to see you. >> you say it is irresponsible for the republicans to propose significant cuts in government spending. let me point out what is happening in europe. in europe, they have cutting back and they will have more and they have a much better economic growth rate than the united states of america and they are
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lowering employment and creating jobs. that would seem europe austerity is responsible. >>guest: is not austerity but the proposals will increase our expenditures without cutting so what we have is fiscal, the president called it irresponsible and i call it pie in the sky we have $4 trillion to $5 trillion in addition to the deficit without cuts. so, for example, the health care bill that is $130 billion added to the deficit the next ten years but the tax cut for the wealthy? these are not folks that neat h need a tax cut. >> you are saying it is irresponsible to propose what the g.o.p. is proposing saying it will add to the deficit. if you go with the president's policy, spend more, stimulate more, that is highly
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irresponsible because you are already running up $1 trillion worth of extra debt each and every year. that surely, professor, that is irresponsible and has been irresponsible for the past 18 months. >> well, no, actually, the deficit, the stimulus spending since president obama has been in office only accounts for 10 percent of debt and our debt and deficit problems started in 2001. >> we raised budget spending. >> it was an economic downturn. >> we spent enormous amount on stimulus and we are literally borrowing $1 trillion each year as far as the eye can see. that is irresponsible. >> that is keeping us out of the the great depression and this has tarp and economic responding, the stimulus spark acknowledge kept us away from double digit. employment and added three million to five million jobs. >> but it is irresponsible for
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congress to go home leaving none of us sure knowing what our tax rates will be. that is irresponsibility. is it not? >>guest: president obama and democrats in congress have agreed they will be reducing taxes for 98 percent of americans and the top 2 percent --. >> if you have the majority in congress, why not bring it to a vote and give us the certainly. it is irresponsible to go away with no vote. egging i agree i wish they would take action but the problem is it is an election year and republics and democrats are having a difficult time conveying what they will do to solve the crisis --. >> the democrats and president are putting politics other policy. >>guest: no, the republicans are . >> that is why the speaker will not bring it to a vote in the house. she does not have the votes.
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>>guest: if the republicans would step up she would have the plates if it were not so partisan we could get something done and i agree with you on that, it is bad policy. >> i like to ask academics on the left this moral question, not an economics question, a moral question. do you think it is moral to take more than half the income of successful people, anyone who is successful, is it moral to take more than half their income in federal and state income taxes because that is what we are doing in america at the moment and it will get worse. is it moral? >>guest: that is the standard line that half of the income, there are tax loopholes, and wealthy members --. >> you are wrong, madam. egging i disagree. >> every dollar you make, $350,000 every extra dollar you make above that, you loads 50 --
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you lose 50 percent. that is a fact. in federal and state. >>guest: i wish that happened and that there were not tax loopholes that --. my family uses the loopholes and i know wealthy individuals are not paying 50 percent but i wish they were because morally, i do believe people who can afford to pay more should be paying more in taxes to help those who are up able. i do believe --. >> someone would goes out there and works from 4:00 and takes personal responsible, works hard, lives the american dream, you think it is moral for a government to come along and take half of it and say i will spend it better than you. you don't deserve it. that is american morality in the year 2010? >>guest: sit clearly a redistribution of wealth. >> i don't deserve to hold on to
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half? >>guest: if we had a system of merit but we don't. the hardest working people i know are poor individuals working two or three jobs to make end's meet. the janitors. the service workers. the notion that somehow someone --. >> would you call yourself a socialist? >>guest: no, i believe in having a safety net so we do not have --. >> but not a socialist? >>guest: no, i live in a united states and that is supposedly a bad word here. if you really want redistribution of the wealth that is social im. >>guest: socialist is state run but i do believe that the government can be a great force for good. >> you are a private sector person would does not believe that success in the private sector means you can keep half of what you make? egging i think that people in the private sector and people who make a lot of money like warren buffet and other generous individuals we should learn from them. if you have money, you can give
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away, or for social services you should do that. that is a moral issue. that is what wealthy victims should -- wealthy individuals should be doing. >> why airlines might want to rethink those checked baggage fees because this airline doesn't and it just struck one very big deal today: southwest. very big deal today: southwest. stay tuned. one month, five years after you do retire? ♪ client comes in and they have a box. and inside that box is their financial life. people wake up and realize i better start doing something. we open up that box. we organize it. . we really are here to help you. they look back and think, "wow. i never thought i could do this." but we've actually done it. [ male announcer ] visit ameriprise.com and put a confident retirement more within reach.
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